Murdock carpet cleaners ended its first month of operations on june

Chapter 3
P3-42 Preparing Adjusting Entries, Financial Statements, and Closing Entries
Murdock Carpet Cleaners ended its first month of operations on June 30, 2014. Monthly financial statements will be prepaid. The unadjusted account balances are as follows.
 
Murdock Carpet Cleaners Unadjusted Trial Balances June 30, 2014
 
 
 
 
 
 
Debit
Credit
Cash
 
 
 
 
$1,180
 
Accounts Receivable
 
 
 
 
450
 
Prepaid Rent
 
 
 
 
3,100
 
Supplies
 
 
 
 
2,520
 
Equipment
 
 
 
 
4,440
 
Accounts Payable
 
 
 
 
 
$760
Common Stock
 
 
 
 
 
2,000
Retained Earings
 
 
 
 
 
5,300
Service Fee Earned
 
 
 
 
 
4,650
Wage Expense
 
 
 
 
1,020
 
 
 
 
 
 
$12,710
$12,710
 
Chapter 4
M4-26. Calculating Net Cash Flow From Operating Activities (Indirect Method)
The following information was obtained from Galena Company’s comparative balance sheets. Assume that Galena company’s 2013 income statement showeddepreciation expense of $8,000. Gain on the sale of investments of $9,000, and a net income of $45,000. Calculate the net cash flow from operating activities using the indirect method.
 
31-Dec-13
31-Dec-12
Cash
$19,000
$9,000
Accounts Receivable
44,000
35,000
Inventory
55,000
49,000
Prepaid Rent
6,000
8,000
Long-Term Investments
21,000
34,000
Plant assets
150,000
106,000
Accumulated depreciation
40,000
32,000
Accounts payable
24,000
20,000
Income tax payable
4,000
6,000
Common stock
121,000
92,000
Retained earnings
106,000
91,000
 
M4-29. Classifying Cash Flow Statement Components and Determining Their Effects
The following table presents selected items from a recent cash flow statement of Nordstroms, Inc
For each item, determine whether the amount would be disclosed in the cash flow statement under operating activities, investing activities, or financing activities. (Nordstrom uses the indirect method of reporting.)
For each item, determine whether it will appear as a positive or negative in determining the net increase in cash and cash equivalents.
1
Increase in accounts receivable
 
2
Capital expenditures
 
3
Proceeds from long-term borrowings
 
4
Increase in deferred income tax net liability
 
5
Principal payments on long-term borrowings
 
6
Increase in merchandise inventories
 
7
Decrease in prepaid expenses and other assets
 
8
Proceeds from issuances under stock compensation plans
 
9
Increase in accounts payable